The Reserve Bank of India (RBI) announced that it will keep the repo rate unchanged at 6.5% following its third bi-monthly policy meeting held from August 6 to August 8. Governor Shaktikanta Das shared this decision during the Monetary Policy Committee (MPC) announcements on August 8.
Key Announcements
- Repo Rate: Unchanged at 6.5% for the ninth consecutive policy meeting
- Objective: Continue efforts to lower inflation towards the 4% target
- GDP Growth Forecast: Revised to 7.2% for FY25, up from 7%
- Inflation Forecast: Remains unchanged at 4.5% for FY25
Summary Table
| Aspect | Previous Decision | Current Decision |
|---|---|---|
| Repo Rate | 6.5% | 6.5% |
| Policy Meetings | August 6-8 | August 6-8 |
| GDP Growth Forecast | 7% for FY25 | 7.2% for FY25 |
| Inflation Forecast | 4.5% for FY25 | 4.5% for FY25 |
Future Possible MPC Meeting Dates
- October: 7-9
- December: 4-6
- February: 5-7, 2025
In June, the RBI MPC voted 4-2 to maintain the repo rate at 6.5% for the eighth consecutive time, continuing with the stance of ‘withdrawal of accommodation’. This consistent decision underscores the RBI’s commitment to controlling inflation and ensuring economic stability.
Governor Das emphasized the central bank’s focus on sustainable economic growth while keeping inflation in check. The unchanged rate reflects the RBI’s cautious approach amid global economic uncertainties.
The RBI’s decision to maintain the repo rate at 6.5% aligns with its strategy to achieve a balance between stimulating economic growth and managing inflation.
